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The Sinocism China Newsletter For 02.28.13

Beijing is besieged by smog again as you can see in these views of Beijing CBD, one from two hours ago, one from January 17. The 300+ meter tall China World Phase Three is actually still standing, even if you can not see it. Xinhua says Beijing has been hit with a sandstorm today, a sandstorm that has raised the AQI to 500+ in Beijing and several other cities in the region.

This winter’s sustained smog siege is the worst I have seen it in the eight winters in a row I have spent here. Something more than just emissions levels (weather patterns perhaps?) must have changed.

At least three state-run newspapers have slammed China’s environmental authorities for arguing that soil pollution data is a “state secret” and thus not fit for public consumption, marking the second time in less than two months that state media have come out swinging against the government over environmental issues.

“State secrets is the magic phrase for rejecting disclosure of information. Is it because it involves secrets that it can’t be revealed, or is it simply because you’re afraid of triggering dissatisfaction?” the Communist Party’s flagship newspaper People’s Daily said in on its official account on the Sina Weibo microblogging platform this week. “Covering this up only makes people think: We’re being lied to.”

In the end, I think the information will be released. There is little justification to protect data on soil contamination, when the Ministry has already acknowledged the right of the people to have access to air quality statistics. More importantly, I think this is just the beginning. The “public’s right to know” along with the Internet are likely to be the two great transformative political processes of the next three to five years.

China Provinces Cut Growth Targets in Sign Debt Concerns Heeded – Bloomberg – Almost half of China’s provinces are setting their growth sights lower in the wake of the central government’s emphasis on the quality of expansion over speed, a sign of an increased focus on tackling rising debt. Fourteen provinces have set lower targets for gross domestic product expansion this year than in 2012 and the other 17 left their goals unchanged, according to Nomura Holdings Inc. The weighted average target has dropped to 9.9 percent from 10.3 percent, Citigroup Inc. calculates.

Asia Unbound » Secretary of State John Kerry on China – going wobbly?// By suggesting that the pivot may be out of favor, Secretary Kerry has also drawn into question U.S. credibility. Officials and analysts abroad have already raised doubts about U.S. staying power in the Asia Pacific; Secretary Kerry’s doubts will only add fuel to the fire.

China should abandon North Korea – FT.com – Considering these arguments, China should consider abandoning North Korea. The best way of giving up on Pyongyang is to take the initiative to facilitate North Korea’s unification with South Korea. Bringing about the peninsula’s unification would help undermine the strategic alliance between Washington, Tokyo and Seoul; ease the geopolitical pressure on China from northeast Asia; and be helpful to the resolution of the Taiwan question. The next best thing would be to use China’s influence to cultivate a pro-Beijing government in North Korea, to give it security assurances, push it to give up nuclear weapons and start moving towards the development path of a normal country. Deng Yuwen is deputy editor of Study Times, the journal of the Central Party School of the Communist Party of China

New leaders to stress economic stability over reform at NPC meeting | South China Morning Post – The annual meeting of the National People’s Congress, beginning on Tuesday, will be a stage for the new leadership to unveil more reform thinking, as Beijing focuses on promoting sustainable growth and social equality, analysts say. But the new administration is also expected to tell deputies that its top short-term priority remains ensuring policy stability, including preventing any sharp rebound in inflation or property prices.

Next foreign minister tipped to be Japan expert Wang Yi | South China Morning Post– China is likely to appoint an expert on Japan and North Korea as its next foreign minister, three independent sources said, in a measure of Beijing’s resolve to improve difficult relationships with two of its closest neighbours. Barring last-minute changes, Wang Yi, 59, the ambassador to Japan from 2004 to 2007, was likely to be appointed foreign minister during the annual session of the National People’s Congress next week, the sources said.

For Gates Foundation, Philanthropy is a Two-Way Street – Caixin –abridged translation of this week;s cover story// Six years after setting up a China office, billionaire philanthropist Bill Gates’ foundation is exploring a new way of helping: exporting the country’s innovations in health and agriculture to help other countries. This is a shift from the foundation’s previous China focus, which mostly provided grants to help solve health issues such as with vaccinations and HIV/AIDS prevention and treatment.

BUSINESS AND ECONOMY

City Lights Shine for Equities in China – WSJ.com– China’s next premier has repeatedly pledged to redouble efforts to “urbanize” the world’s second-largest economy and move more farmers into cities. Since November, when he was picked at the Communist Party’s 18th National Congress, Li Keqiang has said that China needs to “push forward” with urbanization, calling it a “huge engine” of economic growth. His words have given the green light to money managers: Many are now jumping into Chinese stocks, wagering that a further expansion of China’s cities will give a boost to consumer spending. That would trickle through to companies from property developers to health-care providers in the form of bigger profits and higher share prices.

Top China Analyst: I Ain’t Afraid of No ‘Ghost Cities’ – China Real Time Report – WSJ– n the aftermath of a construction frenzy that lifted China out of the Great Recession, Western hedge fund managers set off on trips to places like Ordos in Inner Mongolia to view the eerie phenomenon – and spooked themselves into believing that a massive oversupply of real estate meant a Chinese economic collapse was inevitable. What happened? Well, housing prices and sales volumes have been steadily rebounding, to the point where the government is now contemplating new cooling measures. So much for the epic oversupply that bears predicted would wipe out growth. “Hurray for Ghost Cities,” writes the economist and veteran China-watcher Jonathan Anderson in a recent note.

Doubts Over Returns Hit Fundraising in China – Deal Journal – WSJ– Investors are growing skeptical that private equity in China can keep giving them high returns, and local funds are bearing the brunt of their reluctance to pump in more cash. The reasons: China’s market for initial public offerings has stalled, making it harder for private-equity firms to cash out of investments, and investors are growing disillusioned with the idea that China’s economy is in line for continued spectacular growth. Growth has already slowed slightly from previous years.

China Mulls Entry of Housing Fund into Equity Markets-Caijing – China is discussing and preparing detailed rules on introducing the country’s poorly-tapped housing fund into equity markets, said an official with China’s securities regulator Tuesday. Researching works have been going on for a while and the China Securities Regulatory Commission (CSRC) will join other departments in revamping the Housing Fund Management Rules, the unnamed official with CSRC told the official Xinhua News Agency.

Ambow Education Investors Pursue Lawsuit as Shares Plunge – Bloomberg – believe auditor is PWC, not the usual suspect Deloitte// Ambow Education Holding Inc. (AMBO), a Chinese school operator, was sued by investors who say the company orchestrated a “fake acquisition” to facilitate an initial public offering in the U.S. The shares fell more than 12 percent in New York trading. Byron Brown and other investors are seeking unspecified damages and legal fees on behalf of U.S. purchasers of Beijing- based Ambow’s American depositary receipts in connection with the Aug. 5, 2010, offering, according to an amended complaint filed Feb. 19 in federal court in Los Angeles.

Social Change Leaves China Struggling to Define Role of Law – China Real Time Report – WSJ– By Stanley Lubman As of March 1, dog owners in the southern Chinese city of Shenzhen who disobey a new law mandating the use of “pet restrooms” are subject to an $80 fine. According to another new regulation approved in Beijing late last year, children are required to visit elderly parents “often.” These and other recent legal developments – including a pair of domestic violence cases with wildly different outcomes – illustrate how unprecedented social changes in China are provoking new questions about the role of law in society, and creating problems for law-makers, citizens and courts alike.

China’s Navy Goes Stealth–The Diplomat – In what it called a major step in the “systematic upgrade of its equipment and defense,” the People’s Liberation Army Navy (PLAN) on February 25th received the first of an expected 20 Type 056 Jiangdao-class stealth corvettes, a new type of ship that experts say will play a major role in defending China’s territorial waters.

Outlook for energy security of China | East Asia Forum – Author: Kejun Jiang, NDRC. Energy security has typically focused on energy imports, but increasingly the security of energy production, energy transportation, the energy environment, energy prices and energy investment have also become important considerations.

Chinese General’s Angry Online Rant Has Japanese Laughing, And Many Chinese Cheering | Tea Leaf Nation – Perhaps fortunately for regional stability, Japanese citizens are not exactly shrinking in fear of a possible Chinese-led bombardment. Whatever Luo Yuan’s intent may have been in making his statement—if he did actually say it—he now has established himself as little more than a screeching hawk in the eyes of Japanese netizens. Luo certainly did not succeed intimidating Japanese citizens into submission.

China’s first lady gives marching orders to military perk | South China Morning Post– But as Xi pushes forward a high-profile campaign to rid the Party and military ranks of corruption and waste, Peng found herself in the news again as a model Party member more than ready to answer her husband’s marching orders. Cai Xiaoxin, a military researcher who has a verified real-name account on China’s social media platform Weibo, wrote on Wednesday that Peng had voluntarily given a flat she owned back to her military unit. According to Cai, the flat was in a military compound in west Beijing, that had been awarded to Peng many years ago.

Sequestration: How China sees the prospect of U.S. military cuts | Marketplace.org– Now that a budgetary doomsday scenario has been laid out for the world’s largest military, you might think China would see this as its golden opportunity to assert itself regionally. Think again, says Jin Canrong, International Relations Professor at Beijing’s Renmin University. “In the coming years the defense budget will be cut, but the military power of the United States is far ahead of China,” says Jin.

China’s Internet is a Giant Shopping Mall [Infographic] | Alizila: News about E-commerce, Alibaba Group, China’s Internet, Alibaba.com and Taobao – It’s well known that the spending power of China’s rising middle class is changing the global retail landscape. Less understood is the enthusiasm Chinese consumers have for shopping on the Internet. After increasing by 55% last year to $194 billion, China’s total online retail spending this year could blow by that of the U.S., making the mainland the world’s largest online shopping market, some researchers are predicting. Check out this infographic to find out how much the average Chinese consumer spends via the Internet, what they buy, and how fast their e-consumption is growing.

SOCIETY, ART, SPORTS, CULTURE AND HISTORY

Next wave of Chinese tennis players set to make breakthrough | The Li-Ning Tower If Li Na’s French Open win was the earthquake, then here comes the tsunami. I’ve written before about the crop of Chinese youngsters poised to make a breakthrough in the women’s game, and it looks like it might be happening. Yesterday at the Malaysian Open, 21-year-old Wang Qiang beat former world number 1 and the tournament’s top seed, Caroline Wozniacki 2-6, 7-6, 6-1 for the biggest win of her career

China promotes austerity in schools – Xinhua | English.news.cn– China’s Ministry of Education (MOE) has required schools to shun extravagance and waste, echoing calls from the country’s leaders for thrifty lifestyles and a rejection of pomp. All schools are asked to eradicate pompous decorations and cut the size and number of meetings, ribbon-cutting ceremonies, celebrations and forums, the ministry said in a circular on Wednesday

Elderly population to surpass 200 mln in 2013 – Xinhua | English.news.cn– China will have 202 million elderly people in 2013, accounting for 14.8 percent of the total population, the China Research Center on Aging said on Wednesday. According to a center report, the country witnessed the first peak in its growing elderly population, which included 194 million senior citizens at the end of 2012.

China’s rural poor population declines – Xinhua | English.news.cn– China’s impoverished population has declined for the first time since the poverty line was raised in 2011, although poverty alleviation work remains arduous, a government office said Tuesday. The poverty-stricken population in rural areas stood at 98.99 million people around the end of 2012, down 23.39 million compared with 2011, the poverty alleviation office of the State Council said Tuesday.

China’s poor: World-class poverty | The Economist – Here Xinhua is being unfair. Even though 6.3 yuan is now worth only $1 on the foreign-exchange markets, China’s poverty line is in fact considerably higher than the World Bank’s standard. A detailed explanation of this paradox can be found in this post on Free exchange, where the real nerds reside. A simpler version follows.

China’s Energy and Climate Challenges – Carnegie Endowment for International Peace– China overtook the United States in 2009 as the world’s biggest energy consumer. Now Beijing faces increasing international pressure to take the lead in addressing the global challenge of climate change. In this Q&A, Wang Tao examines China’s approach to tackling climate change. He explains why China needs to become a global leader by enacting robust policies to support the development of clean technology, especially electric vehicle

FOOD AND TRAVEL

Jing Daily: Exclusive Travel Sites Hit The Sweet Spot For China’s Globetrotting Elite – No longer driven by a single-minded focus on spending the majority of their time overseas shopping, some wealthy Chinese tourists — often on their fifth or sixth international jaunt — are spending more on accommodations and experiential travel, a development on which a handful of niche travel e-commerce sites have been quick to pounce. Most recently, one player, HH Travel, has made headlines owing to very high average client spend — 100,000 yuan (US$16,041) per person in 2012.

The Panamanian Connection, Pt. 2: Trouble in Luzhou | 300 Shots at Greatness– Now the first thing that jumps out at you is that “Gold Medal.” It’s off center, the wrong color and printed in a font that looks more 1960s Sci-Fi than 1915 World’s Fair. But then look further down and note that the award was bestowed upon: ORCHARD CITY CANNING COMPANY of Campbell, California for “Assorted Canned Fruits.” When I reached out to the OC Canning Co. for comment,[3] I found this lovely Campbell City historical page, which states, in no uncertain terms, that the award was a BRONZE medal. mWow. Just wow. Luzhou Laojiao took an award it didn’t win, Photoshopped it to look more impressive than it actually was, but forgot to Photoshop out the original company’s name before sticking it on a baijiu package sold all over the country. Good work.